Climate action beyond the White House: a business imperative

Sarah Merricks is the chief strategy officer and co-founder of the Global Network for Zero

The Trump administration may not be on board with climate action, but US states and cities are advancing with measures to reduce emissions

With the US withdrawal from the Paris Agreement and reduced federal climate priorities, we are entering a new era of political uncertainty regarding the way forward in addressing climate change.

The US faces significant climate policy gridlocks marked by executive orders, clawbacks of major climate laws and agency reorganisations. Yet, businesses still face growing climate disclosure requirements through frameworks such as the Science Based Targets initiative guidelines, state regulations and international mandates.

Despite this federal retreat, the reality of the situation for business leaders is clear: meaningful climate action cannot wait for perfect federal alignment. The time for action is now. 

While federal leadership has wavered, some state governments have continued to advance climate action. A localised approach, combined with market-driven forces, allows businesses to take meaningful action, even when federal leadership is inconsistent. States are continuing to advance renewable portfolio standards, emissions targets and forward-thinking building codes. 

California, leading the world as the fifth-largest economy, has established comprehensive environmental, social and governance regulations that serve as a benchmark for the rest of the nation. In Colorado, Governor Jared Polis has reaffirmed his commitment to emissions reductions. Michigan has experienced an influx of clean energy jobs, while California and Washington have implemented ambitious standards that businesses must navigate regardless of federal direction.

Whether it is making renewable home improvements more affordable or streamlining permits for clean energy technologies, it is possible to be resilient despite a challenging administration. 

City action

On a more local level, cities have become powerful climate actors. Climate Mayors, a bipartisan network of nearly 350 mayors representing 60mn Americans, and C40, a global coalition of 100 major cities, have made substantial progress. Through community actions, building performance standards and commitments to net zero, climate leadership is happening. 

Boston has implemented carbon zoning requirements, Chicago has transitioned city buildings to 100 per cent clean power, and Austin remains steadfast in adopting its climate equity plan. Cities and businesses working together can achieve greater results in mitigating emissions and climate risk than they could individually.

Whether it is making renewable home improvements more affordable or streamlining permits for clean energy technologies, it is possible to be resilient despite a challenging administration

Waiting for political solutions is not always the best approach, especially with an issue as dire as a warming planet. When I worked on Capitol Hill fresh out of college, tracking climate legislation in 2010, I saw first hand how few bills related to energy and the environment passed both chambers. This led me to the green building industry, where tangible greenhouse gas reductions were made possible regardless of political headwinds. Every green building has a direct impact on reducing emissions.

Forward-thinking companies know there are impactful and compelling reasons for maintaining climate commitments. Managing risks to operations and supply chains, uncovering cost-saving opportunities through efficiency, meeting investor demands for climate transparency, and attracting talent through demonstrated initiatives are just some of them.

There is a clear business case for climate action that extends far beyond mere compliance. Private capital continues to flow towards climate solutions, as seen in initiatives such as Bloomberg’s funding following the Paris Agreement withdrawal. Companies and leaders who embrace proactive climate leadership now position themselves for a competitive advantage in the low-carbon economy of the future.

Market pressure

Market pressures are increasingly reshaping business priorities, regardless of political dynamics. Investors are demanding greater climate risk transparency, while shifting consumer preferences and growing employee activism are pushing companies to take action. Together, these market forces are creating powerful accountability mechanisms that extend beyond government regulation.

Luckily, many in the private sector recognise this. While some companies have scaled back on formal and public net zero work because of the current political narrative, research reveals the majority of businesses remain deeply invested in sustainability. 

Recognising that climate action aligns with long-term profitability and risk management, a recent survey by Economist Impact finds 89 per cent of corporate leaders expect sustainability to become a more central focus in the future.

A letter from Ceres shows 71 per cent of companies voluntarily report climate-related disclosures. These statistics demonstrate that leaders see long-term value in climate commitments, regardless of whether they are mandated by federal law.

The climate crisis cannot wait for total political alignment or rely solely on government solutions. Through my work in the built environment, I have witnessed how practical approaches deliver real progress. Science-based target-setting remains crucial, with companies actively seeking standardised frameworks. Investment in decarbonisation strategies, including Scope 3 emissions accounting, continues to drive innovation across sectors.

The time for waiting is over. In the current environment, businesses that demonstrate climate leadership will thrive. The question is no longer whether to act, but how quickly we can implement solutions at hand.